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The Average Cost of Producing 200 Units Is $82 for Alpha

question 140

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The average cost of producing 200 units is $82 for Alpha Company. If production increases by 300 units, the average cost falls to $61.
a)What is the variable cost per unit?
b)What is the fixed cost?
c)What is the average cost of producing 250 units?


Definitions:

Luxottica Group

An Italian multinational corporation that designs, manufactures, and sells eyewear and eyecare products, known for owning numerous prestigious brands and retail outlets.

Ralph Lauren

An American fashion designer known for his eponymous global multi-billion-dollar enterprise, which represents a distinctive American style.

Prescription Frames

Eyeglass frames that are specifically chosen and fitted to hold lenses that have been prescribed by an eye care professional to correct vision problems.

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Eyewear designed to protect the eyes from the sun's harmful UV rays and glare.

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